Oman Signs Agreements for Exploration and Mining with Two Specialized Companies

Strategic Insights -

The Ministry of Energy and Minerals in Oman has signed three new agreements for exploration and mining with two specialized companies, Gulf Mining Materials Company and Novel Muscat International Company. The agreements aim to strengthen the mining sector, enhance the added value of mineral resources in the Sultanate of Oman, and boost national production. The agreements cover exploration and mining rights in three concession areas, including Concession Area C-11 in Al Buraimi Governorate, and areas G1-51 and G2-51 in Al Wusta Governorate.

Key Takeaways:

  • The total investment in the projects, including factories, studies, and mining plans, is estimated at OMR192 million ($500 million).
  • The Ministry of Energy and Minerals aims to attract qualitative investments capable of creating a tangible economic impact through the extraction of mineral resources and transforming them into advanced processing industries.
  • The agreements focus on leveraging the knowledge and technical expertise of specialized companies and enhancing cooperation between the public and private sectors.
  • The projects will contribute to diversifying the economic base, increasing the competitiveness of Omani products, and raising the mining sector's contribution to the GDP.
  • National cadres will be prioritized for employment, and sufficient opportunities will be provided to small and medium enterprises through subcontracts.
  • The company, Novel Muscat International, will establish an integrated industrial complex that transforms mineral resources into locally processed products, enhancing added value and creating job opportunities.
  • The Ministry of Energy and Minerals seeks to develop processing industries related to mineral resources, improve the efficiency of national resource utilization, expand the base of local production, and increase the mining sector's contribution to supporting the national economy and diversifying income sources.

Statistics:

  • OMR192 million ($500 million) is the total investment in the projects, including factories, studies, and mining plans.
  • The concession areas covered by the agreements span:

+ 1,089 square kilometers in Al Buraimi Governorate

+ 558 square kilometers in Al Wusta Governorate (Area G1-51)

+ 30 square kilometers in Al Wusta Governorate (Area G2-51)

  • The mining sector aims to contribute OMR81 billion to the GDP by 2040.
  • The company, Gulf Mining Materials, plans to increase production capacity to 7,200 tons per month by 2026.

Sources:

Times News Service, Muscat Media Group

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